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EK, QR and EY make a move in US markets

 
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iah87
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Joined: 17 Apr 2007
Posts: 2566

PostPosted: Fri Nov 07, 2014 1:41 am    Post subject: EK, QR and EY make a move in US markets Reply with quote

http://online.wsj.com/articles/emirates-etihad-and-qatar-make-their-move-on-the-u-s-1415226589?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10630045880067773408604580257113053400420.html

Sorry the article requires subscription, but I can provide some quotes below:

Airlines also fume that Emirates took advantage of international Open Skies treaties by starting flights last year nonstop between New York and Milan, a significant incursion into trans-Atlantic flying in direct competition with American, Delta and Alitalia. These treaties have liberalized air service over the past two decades by removing government limits on airlines and routes they fly.

Jeff Smisek , chief executive of United Airlines, called for U.S. government limits on Gulf airlines. (The Obama administration has shown no signs of a policy change.) Mr. Smisek’s counterpart at American, Doug Parker , told an airline conference this fall that the Gulf carriers were his biggest business concern.


Another quote:

The Gulf carriers are backed by cash-rich governments in Qatar and the United Arab Emirates. (Dubai and Abu Dhabi are emirates within the U.A.E.) These countries are using airlines for economic development and building a viable industry for when their oil and gas run out, the Gulf airlines say. They have taken advantage of cheap labor in many parts of the world and brought in workers to follow their own housing, training and work rules, demanding of them exacting service and long hours.


Just like the Indian and European counterparts now US airlines are starting to complain about increasing service to US. EK just announced a 4th JFK flight (3 on A380), so the US carriers are getting cold feet.
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The_Goat
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Joined: 03 Mar 2007
Posts: 3260
Location: South of France

PostPosted: Sat Nov 08, 2014 5:36 pm    Post subject: Reply with quote

I think it is safe to say that the biggest patrons of the ME3 on their US services are passengers from South Asian countries like India, Sri Lanka, Pakistan and Bangaldesh, all of whom have huge diasporas in the US.

And it is EXACTLY this market that the snobbish US carriers have been ignoring or belittling all the while. Now with the ME3 slurping up this market, the US biggies are whining like losers.

How difficult is it to learn that if there is a market, someone will provide for it?
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Nimish
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Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India

PostPosted: Mon Nov 10, 2014 12:16 am    Post subject: Reply with quote

The_Goat wrote:
I think it is safe to say that the biggest patrons of the ME3 on their US services are passengers from South Asian countries like India, Sri Lanka, Pakistan and Bangaldesh, all of whom have huge diasporas in the US.

And it is EXACTLY this market that the snobbish US carriers have been ignoring or belittling all the while. Now with the ME3 slurping up this market, the US biggies are whining like losers.

How difficult is it to learn that if there is a market, someone will provide for it?


Agreed! So far they were happy to route pax via their partners in Europe - all the time charging premium $$$s. That strategy was good when there was no MEB3 type competition, but now the American carriers would do well to rethink their strategy.
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